All Forum Posts by: Phil Avery

Your creative investment strategy has risks like interest-only loans in a declining market and complex IUL policies. Challenges include finding a lender familiar with IUL, meeting credit score requirements, affording fluctuating payments, and planning principal repayment. Seek advice, start small, and be patient for gradual real estate wealth.

@Troy Baack,

@Ryan Bunting and @Lane Kawaoka offer some good answers to your question. Let me chime in by adding a few more pros and cons.

In terms of the pros, turnkey providers are a good option for out-of-state (and other long-distance) investors who want to own rentals without the headaches of being a landlord. If time and capacity are your bottleneck, turnkey investing could work for you.

The biggest downside, however, is the added costs. Turnkey providers charge a percentage of gross rents and may price their rent-ready inventory at or above market value, so turnkey solutions aren’t for investors who want to buy at a discount to market and/or DIY-ers who want to rehab distressed deals themselves.

I've been pouring through many of those links, watching Zach's videos on youtube, and had an initial consultation with RTR. I have other turnkey rentals and have not had the best experience (in Memphis with Mid South Home Buyers/Mid South Best Rentals). 
Based on the issues I've had, it sounds like RTR handles things quite well. I know you asked for real world experience, just thought I'd share what I do know. I'm looking to move forward with RTR.

Much appreciated. Thanks for chiming in. Let us know how it goes!

I do think people get too caught up in the property type and area as opposed to the math that is involved. You're right, it's gotten a lot harder in the last 18 months. Not only did interest rates make the P&I payments on a property much more expensive vs rental growth, but taxes and insurance have risen as well making a lot of properties not cash flow. Many of the investors we work with have started putting a lot more down on the properties to keep payments lower, thereby making the properties cash flow. Other's are buying properties that needs some TLC that they feel they can get at a discount to fix and rent. In your case, it doesn't sound like that's going to work for you. Keep in mind that as you sift through the haystack looking for the needle, so is 90% of the people on Bigger Pockets and everyone on every RE Facebook Group. It is hard, but every market will have their bad and good deals. 

Zillow is now offering a loan program which allows home buyers to buy a house with as little as 1% down.

Looks like this product is a regular conventional loan where the buyer will bring 1% of the down payment, and Zillow will contribute the remaining 2% of the down payment (handled through closing, not as a direct payment to buyer).

As far as I can tell this down payment assistance will not ever need to be repaid. The only catch is that the borrower needs to be a first time home buyer, they need a minimum 620 FICO, and they need to complete an online education course. Also, at this time this is only offered to buyers in Arizona, but they plan to expand to other states soon.

Seems like a great option for first time buyers. What do you guys think?

Link to Press Release

Hey! I'm a wholesaler in Houston, TX mainly wholesaling land. Would love to connect! 

Hey guys,

So here’s the situation, the seller agreed to 75 down for his building under sub to. While talking on the phone he asked when he was going to get the rest of the money he put in the property, after I refinance. I let him know that’s not really how it works and that 75k is what’s getting him out of the deal. He said he wasn’t interested anymore. Is there any way I can get around this where where the owner is still happy and I’m still giving him 75k down or less? Could the bank when I refi just give him his money? 
thanks 

Best advice: House hack. Utilize an FHA loan and get into a property that you can use to help pay for your mortgage. Wait a few years, build that equity then rent out that property and do the process all over again. If I could go back in time, this is the strategy I would be doing. If you need any advice or guidance, my husband and I are both on the ground helping a ton of investors. We are available to help answer any questions you might have!